This past Wednesday, July 15, 2020, in a surprising move, the Trump administration declared the U.S. Department of Health and Human Services would take control of the country’s coronavirus data, replacing the CDC. This change, which occurred in the midst of a resurging virus – especially in the sunbelt, has been met with skepticism. The reasons for making the change seem plausible but the timing is questionable. Why did the federal government make this change before HHS had the proper technology in place, action which has led to a lack of transparency?
Two days after the announcement, Friday, July 17, Admiral Brett Giroir, Assistant Secretary of HHS was asked, “How long before we have transparency? Will it be a week, a month, six months? Mr. Giroir responded with,
“It’s not gonna be six months.” He also replied, “I’m not the chief technology officer here, I’m a consumer of that information.” “I’m certain it’ll be transparent and posted very, very soon.” He also stated, “We’re seeing the early indicators that the outbreak is starting to become managed.” And, “I think we are turning the corner.”
Skeptics find it interesting that we are ‘turning the corner’ only two days after HHS took over and only one day after new cases in the U.S. hit a record 77,000. Does this make you a little curious?
“It’s the Economy Stupid”
President Clinton’s campaign slogan certainly rings true today. You see, presidential elections are often won or lost on the strength of the economy. Moreover, U.S. economic strength is dictated by consumer spending, which accounts for 68% to 70% of GDP. Consumer spending is also greatly influenced by perception. So, one might ask, “What influences our perception?” According to The Peak Performance Center,
“Influences on perception include past experiences, education, values, culture, preconceived notions, and present circumstances. In the end, the perception you construct becomes your reality.”
Thus, perception surrounding Covid-19 is of the utmost importance and has become the new political battle ground. Whoever controls the data is in the best position to control the narrative and resulting human perception and behavior. What does all this have to do with the economy? Plenty.
Politics & The Economy
Many years ago, the political cycle revolved around elections. Once the election was over, campaigning ceased, and politicians got back to work. More recently, however, we have been trapped in a never-ending cycle of political discord. And with 2020 being an important election year, politics has become central in almost every major issue, especially Covid-19.
Like a 15-round prize fight, in one corner stands President Trump and the majority of republicans. In the opposing corner are the democrats. Make no mistake, the president is indeed concerned about the strength of the economy leading up to November. If the economy is still struggling and Covid-19 is still dominating the news, democrats will argue that the president didn’t act soon enough to subdue the virus. They will also say that he placed his reelection ahead of the health and welfare of the American people. Remember, the November election will ultimately be won or lost on the battlefield of perception. Although we have “truth in lending” laws to protect consumers from rogue lenders, there is no such equivalent in politics. According to one political consultant, since both sides engage in untruths, it’s assumed that’s just how the game is played.
As both parties seek to retain and increase their power this November, Americans must sort through a tremendous amount of disinformation, especially on social media. Anyone can post their opinion and state it as fact. Remember, it’s all about perception.
The president is leaning heavily on the economic issue, while a high percentage of democrats are following the advice of medical experts. Each side is spinning its own narrative, hoping to sway voters in November. This election has special economic significance given the civil unrest between various factions. Rahm Emanuel, former chief of staff under Barak Obama, said during the 2008 housing crisis,
“You never want a serious crisis to go to waste. And what I mean by that is it’s an opportunity to do things that you think you could not before.”
How long will Covid-19 persist? When will the American economy return to its former glory? How long until unemployment declines to its pre-Covid level? Until we have an effective vaccine, much will depend on the uniformity of the message from our elected officials and the perception of the American people. The longer we remain divided over the recommended safety measures to combat the virus, the longer we will be in this present situation. We all want this to end as soon as possible, but the behavior of many is prolonging the outbreak.
George Washington once said that “the bosom of America” was open to all, but only if they were willing to be “assimilated to our customs, measures, and laws: in a word, soon become our people.”
It’s time for ‘we the people’ to behave as the ‘United’ States of America and join together in the common cause of defeating this invader. The health of our economy and the lives of our neighbors hangs in the balance.
TORONTO – Strength in the base metal and technology sectors helped Canada’s main stock index gain almost 100 points on Friday, while U.S. stock markets also climbed higher.
The S&P/TSX composite index closed up 93.51 points at 23,568.65.
In New York, the Dow Jones industrial average was up 297.01 points at 41,393.78. The S&P 500 index was up 30.26 points at 5,626.02, while the Nasdaq composite was up 114.30 points at 17,683.98.
The Canadian dollar traded for 73.61 cents US compared with 73.58 cents US on Thursday.
The October crude oil contract was down 32 cents at US$68.65 per barrel and the October natural gas contract was down five cents at US$2.31 per mmBTU.
The December gold contract was up US$30.10 at US$2,610.70 an ounce and the December copper contract was up four cents US$4.24 a pound.
This report by The Canadian Press was first published Sept. 13, 2024.
OTTAWA – Statistics Canada says wholesale sales, excluding petroleum, petroleum products, and other hydrocarbons and excluding oilseed and grain, rose 0.4 per cent to $82.7 billion in July.
The increase came as sales in the miscellaneous subsector gained three per cent to reach $10.5 billion in July, helped by strength in the agriculture supplies industry group, which rose 9.2 per cent.
The food, beverage and tobacco subsector added 1.7 per cent to total $15 billion in July.
The personal and household goods subsector fell 2.5 per cent to $12.1 billion.
In volume terms, overall wholesale sales rose 0.5 per cent in July.
Statistics Canada started including oilseed and grain as well as the petroleum and petroleum products subsector as part of wholesale trade last year, but is excluding the data from monthly analysis until there is enough historical data.
This report by The Canadian Press was first published Sept. 13, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in the base metal and energy sectors, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 172.18 points at 23,383.35.
In New York, the Dow Jones industrial average was down 34.99 points at 40,826.72. The S&P 500 index was up 10.56 points at 5,564.69, while the Nasdaq composite was up 74.84 points at 17,470.37.
The Canadian dollar traded for 73.55 cents US compared with 73.59 cents US on Wednesday.
The October crude oil contract was up $2.00 at US$69.31 per barrel and the October natural gas contract was up five cents at US$2.32 per mmBTU.
The December gold contract was up US$40.00 at US$2,582.40 an ounce and the December copper contract was up six cents at US$4.20 a pound.
This report by The Canadian Press was first published Sept. 12, 2024.
